Background of EIS
Let's dive into a little background. After the Employment Insurance System Bill 2017 was passed in the Dewan Rakyat in October 2017, Employment Insurance System (EIS) was introduced by PERKESO in January 2018. With the objective to provide helping hand to employees who have lost their jobs due to retrenchment or various circumstances for up to six months.
What's the Eligibility Criteria for EIS (Employment Insurance System) ?
All eligible employees (including temporary or part-time workers) who are Malaysian citizens and permanent residents must register under the Employment Insurance System (EIS) and contribute. However, there's an exemption for employees from the EIS coverage as below:
- Federal and State Government permanent employees
- Domestic servants
- Self-employed (except for self-employed taxi drivers, individuals who run similar services including e-hailing such as Grab and self-employed bus drivers)
- Spouses of a sole proprietor or a partnership owner
Tip: Self-employed individuals may contribute under the Self-Employed Social Security Scheme (Act 789).
Contributions
Every month, employers and employees are responsible for contributing 0.2% each of an employee's salary. Which total contribution would make up to 0.4% of an employee's monthly salary. In contrast, the maximum eligible monthly wage is capped at RM 4,000. In other words, if an individual earning more than RM 4,000 a month, the contribution from you and your employer is fixed at 0.4% of RM 4,000 (RM 15.80).
Did you know?
Swingvy payroll system auto-calculates and generate reports of your employees contribution towards EIS and other statutory bodies.
Eligibility for Employment Insurance System (EIS) benefits
Now that you and your employer are contributing to Employment Insurance System (EIS) each month. It's time to understand how an individual is eligible for Employment Insurance System (EIS) benefits.
The categories of loss of employment that are ELIGIBLE for EIS benefits are as follows;
- Normal retrenchment /redundancy
- VSS/MSS (Voluntary/Mutual Separation Scheme)
- Closure of the company due to natural disasters
- Bankruptcy or closure of the company
- Constructive dismissal
- Resignation due to sexual harassment or threats made in the workplace
- Resignation after being ordered to perform dangerous duties that are not within the job scope
- Resignation due to sexual harassment or threats made in the workplace
- Resignation after being ordered to perform dangerous duties that are not within the job scope
The categories of loss of employment that are NOT ELIGIBLE for EIS benefits are as follows;
- Dismissal due to employee misconduct
- Voluntary resignation
- Retirement
- The expiry of a fixed-term contract (includes unconditional termination of a contract based on an employer-employee agreement or the completion of the project stated in the contract)
How to apply EIS?
If you fall under the eligible category, now its time to apply. There are two ways to apply for Employment Insurance System (EIS) benefits, apply online via EIS Portal or go to the nearest SOCSO office.
Few important things to take note during your application:
- The application should be made within 60 days from the date of the applicant lose their job.
- Please check and keep application slip once you applied.
- Applicants should bring original copy documents during the meeting with PERKESO officers. The documents required as image below;
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